BANGKOK (Reuters) – Thailand’s economy should continue to recover and its overall financial stability remains sound, while financial tightening globally has had a limited impact on the country’s financial conditions, the central bank said on Monday.
A gradual rate increase is still an approach consistent with Thailand’s recovery and inflation outlook, but the central bank is ready to adjust the pace if the outlook shifts, it said in a statement issued for an analysts’ meeting.
Southeast Asia’s second-largest economy will continue to be supported by a recovery in private consumption and the vital tourism sector, the central bank said.
The recovery and inflation outlook have been in line with expectations and long-term inflation expectations remained anchored, it said.
The central bank has forecast the economy will expand 3.2% this year and 3.7% in 2023.
The BOT has raised its key interest rate by a total 75 basis points in three meetings since August. It will next review policy on Jan. 25, when economists expect a further hike.
The tightening cycle has been less aggressive than many regional peers as Thailand’s economic recovery has lagged that of other Southeast Asian countries, with the crucial tourism sector only starting to pick up this year.
(Reporting by Orathai Sriring; Editing by Martin Petty)
